Abstract

The shift from linear to circular networks is gaining global importance with the rise in global carbon footprint. Sourcing, identifying, and assessing the quality of incoming raw materials from remanufacturing or recycling units can pose significant challenges for Original Equipment Manufacturers (OEMs) transitioning to a circular economy. This paper discusses how blockchain technology can mitigate these challenges by enhancing traceability and sustainability in logistics and operations management. A blockchain framework model is proposed in this study that will empower OEMs to make their procurement process lean, reduce material wastage, and enhance overall efficiency in their transition towards a circular network. The proposed blockchain model will increase the traceability of materials, lower dependence upon unreliable suppliers, and guarantee recycling, thereby contributing to a more sustainable and proficient circular manufacturing ecosystem. The adaptability of the proposed blockchain model is also illustrated through a real-time case study involving organizations that are part of a linear and circular symbiotic setup.

Keywords: Blockchain, Linear Network, Circular Network; Remanufacturing, Circular Economy